I am a CPA in Texas with an MBA from the University of Chicago. I have seen a lot and made many mistakes. Hopefully by now I will have learned something from them. Just as importantly, you may learn something from my mistakes. You can e-mail me by clicking on my "View my complete profile".

Friday, January 30, 2009

Blackstone's Outrage

"Mr. [Stephen] Schwartzman became enraged Tuesday after learning that federal prosecutors charged Blackstone Group [BG] investment banker Ramesh Chakrapani with securities fraud related to an insider ploy that netted more than $3.6 million in illicit profits. The [SEC] also filed civil charges against Mr. Chakrapani. ... 'I am personally infuriated that one person's behavior could damage our umblemished record built up over nearly a quarter of a century,' Mr. Schwartzman wrote in a memo to the firm's employees on Wednesday", Peter Lattman at the WSJ, 15 January 2009.

Unblemished record, if you say so. This case is another waste of prosecutorial effort, unless the Feds involved are looking for positions with BG's law firm. $3.6 million is 54% of my Blankfein test; DOJ, SEC, drop this one and get on to serious matters. This case shows how serious Lev Dassin is about showing us of "equality under the law". Schwartzman snaps his fingers and voila, an indictment appears. I await SDNY US attorney's office indictments of persons of consequence.